Sources familiar with the matter told The Wall Street Journal on Thursday that Uber employees and investors have tendered shares equal to around 20 percent of the company.
Uber said the investment would fuel its expansion and technology investments.
The investment is poised to trigger several major organizational changes at Uber that were contingent on securing SoftBank's funding. The deal is good news for SoftBank, which has been trying to get a stake in Uber for years, and good news for the ride-sharing company, which should see an immediate influx of much-needed cash. With this tender offer, Khosrowshahi was able convince some of the company's early powerbrokers, including venture capital firm Benchmark Capital, to whittle down their stakes in the company to bring on what he believes will be a stabilizing force in SoftBank.
The moves come as Uber concludes a hard year, in which it faced a sexual harassment scandal, investigations by regulators and a lawsuit over allegedly stolen technology, among other challenges. SoftBank will occupy two seats on the company's board and will now be an extremely influential player in decisions at Uber.
The investor group is also buying about $1.25bn worth of new shares at a price that values the firm at nearly $70bn, a significantly higher price that is similar to what Uber shares fetched in its last fundraising round. The size of the board will expand from 11 to 17, which dilutes the power Kalanick wields.
SoftBank is purchasing shares from early investors at a price that reflects the lower valuation of $48 billion (about $33 per share, according to Recode), which still allows them to make a rich exit from the maelstrom that has surrounded Uber over the last few years. SoftBank will appoint Vision Fund head Rajeev Misra to the board, along with others associated with the massive fund, according to the report.